Audit 40425

FY End
2022-06-30
Total Expended
$38.48M
Findings
6
Programs
15
Organization: University of Saint Joseph (CT)
Year: 2022 Accepted: 2022-11-17
Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
45925 2022-001 Significant Deficiency - N
45926 2022-001 Significant Deficiency - N
45927 2022-002 - - N
622367 2022-001 Significant Deficiency - N
622368 2022-001 Significant Deficiency - N
622369 2022-002 - - N

Contacts

Name Title Type
HGZCNKLDY2J8 Lucy Lucker Auditee
8602315220 Michele Divito Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of University of Saint Joseph (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the University, and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Schedule also denotes awards passed through from the University to other nonfederal subrecipient organizations. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The amount of loans advanced during the year to students and parents under the Federal Direct Loan Program was $31,501,519. The University is responsible for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program. The Federal Perkins Loan Program is administered directly by the University and balances and transactions related to this program are included in the University's basic financial statements. Loans outstanding at the beginning of the year, loans made during the year and the administrative cost allowance are included in the federal expenditures presented in the Schedule. Loans outstanding at June 30, 2022 under the revolving Federal Perkins Loan Program under Federal Assistance Listing number 84.038 totaled $223,029. There were no new loans awarded and no administrative cost allowance during the year ended June 30, 2022.
Title: Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of University of Saint Joseph (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the University, and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Schedule also denotes awards passed through from the University to other nonfederal subrecipient organizations. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Reconciliation to Financial Statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of University of Saint Joseph (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the University, and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Schedule also denotes awards passed through from the University to other nonfederal subrecipient organizations. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Higher Educational Emergency Relief Fund: COVID 19 HEERF- Institutional Portion (ALN 84.425F): Revenue recognized in the financial statements for the year ended June 30, 2022$2,101,926;2021 lost revenue which was recorded as revenue for the year ended June 30, 2022 however included in the Schedule of Federal Awards for the year ended June 30, 2021 (617,655); Amount recognized on schedule of expenditures federal awards $1,484,271.

Finding Details

Finding No. 2022-001 ? Enrollment reporting Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268, Federal Pell Grant Program: ALN: 84.063 Criteria: Institutions are required to report enrollment information under the Pell grant, Direct Loan, and Federal Family Education Loan (FFEL) programs via the National Student Loan Data System (NSLDS) (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file. The Department of Education lists several certification methods for enrollment reporting, including certifying directly through the NSLDS web site, certifying through the NSLDS?s batch enrollment reporting process, or through certification of rosters provided to the National Student Clearinghouse (NSC). Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The University generally certifies its enrollment information through rosters provided to the NSC. Of the 40 students with enrollment changes that we selected for test work, we identified 1 student whose change in enrollment status was not timely and accurately transmitted to NSLDS. The University was notified of the student?s enrollment status change from full-time to ?Graduated? in February 2022. Accordingly, the students? status changes should have been transmitted after the semester to report both Campus Level and Program Level enrollment status as ?Graduated.? However, in submitting enrollment information through rosters provided to the NSC, both Campus Level and Program Level statuses were reported as ?Withdrawn.? Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. Management evaluated the impacted enrollment roster noting that 64 students ?Graduated? status was not applied and they are improperly reported as ?Withdrawn.? The sample was not intended to be, and was not, a statistically valid sample. Effect: Inaccurate submission of student enrollment status information could affect the determinations that lenders and servicers of students? loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government?s payment of interest subsidies. As the University reported these students as withdrawn prior to reporting as graduated, the students loan subsidy and repayments schedules were not impacted. Cause: The University?s internal control processes did not operate consistently to ensure that all enrollment information, including status changes, were submitted accurately to NSLDS. When the February 2022 graduation roster was submitted to the NSC certain records were not applied as there was a mismatch in the information provided. An error file was received by the University, but the corrections were not made. Recommendation: We recommend that the University review its processes and internal controls to ensure that all enrollment information and status changes are reported completely, accurately, and in a timely manner. Additionally, we recommend a review of the submitted enrollment data to the NSLDS be performed to ensure current student information and status is properly reflected. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.
Finding No. 2022-001 ? Enrollment reporting Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268, Federal Pell Grant Program: ALN: 84.063 Criteria: Institutions are required to report enrollment information under the Pell grant, Direct Loan, and Federal Family Education Loan (FFEL) programs via the National Student Loan Data System (NSLDS) (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file. The Department of Education lists several certification methods for enrollment reporting, including certifying directly through the NSLDS web site, certifying through the NSLDS?s batch enrollment reporting process, or through certification of rosters provided to the National Student Clearinghouse (NSC). Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The University generally certifies its enrollment information through rosters provided to the NSC. Of the 40 students with enrollment changes that we selected for test work, we identified 1 student whose change in enrollment status was not timely and accurately transmitted to NSLDS. The University was notified of the student?s enrollment status change from full-time to ?Graduated? in February 2022. Accordingly, the students? status changes should have been transmitted after the semester to report both Campus Level and Program Level enrollment status as ?Graduated.? However, in submitting enrollment information through rosters provided to the NSC, both Campus Level and Program Level statuses were reported as ?Withdrawn.? Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. Management evaluated the impacted enrollment roster noting that 64 students ?Graduated? status was not applied and they are improperly reported as ?Withdrawn.? The sample was not intended to be, and was not, a statistically valid sample. Effect: Inaccurate submission of student enrollment status information could affect the determinations that lenders and servicers of students? loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government?s payment of interest subsidies. As the University reported these students as withdrawn prior to reporting as graduated, the students loan subsidy and repayments schedules were not impacted. Cause: The University?s internal control processes did not operate consistently to ensure that all enrollment information, including status changes, were submitted accurately to NSLDS. When the February 2022 graduation roster was submitted to the NSC certain records were not applied as there was a mismatch in the information provided. An error file was received by the University, but the corrections were not made. Recommendation: We recommend that the University review its processes and internal controls to ensure that all enrollment information and status changes are reported completely, accurately, and in a timely manner. Additionally, we recommend a review of the submitted enrollment data to the NSLDS be performed to ensure current student information and status is properly reflected. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.
Finding No. 2022-002 ? Title IV Credit Balances Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268 Criteria: A Title IV credit balance must be paid directly to the student or parent as soon as possible but no later than (i) 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (ii) 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period (34 CFR 668.164(h)(2)). Condition: Of the 40 students with credit balances that we selected for test work, we identified 1 student whose credit balance was paid to the student 15 days after the credit balance was created. Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. The sample was not intended to be, and was not, a statistically valid sample. Effect: Returning funds in a timely manner is one of the factors examined by the Department in evaluating a school?s financial responsibility. Cause: The University had new staff in the accounting department who misinterpreted the applicable guidance. One of the days within the 15-day period was a banking holiday and was not included in the day count. Recommendation: We recommend that the University review its processes around Title IV credit balances to ensure they are returned to students as soon as possible but no later than 14 days after the credit balance is generated. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.
Finding No. 2022-001 ? Enrollment reporting Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268, Federal Pell Grant Program: ALN: 84.063 Criteria: Institutions are required to report enrollment information under the Pell grant, Direct Loan, and Federal Family Education Loan (FFEL) programs via the National Student Loan Data System (NSLDS) (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file. The Department of Education lists several certification methods for enrollment reporting, including certifying directly through the NSLDS web site, certifying through the NSLDS?s batch enrollment reporting process, or through certification of rosters provided to the National Student Clearinghouse (NSC). Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The University generally certifies its enrollment information through rosters provided to the NSC. Of the 40 students with enrollment changes that we selected for test work, we identified 1 student whose change in enrollment status was not timely and accurately transmitted to NSLDS. The University was notified of the student?s enrollment status change from full-time to ?Graduated? in February 2022. Accordingly, the students? status changes should have been transmitted after the semester to report both Campus Level and Program Level enrollment status as ?Graduated.? However, in submitting enrollment information through rosters provided to the NSC, both Campus Level and Program Level statuses were reported as ?Withdrawn.? Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. Management evaluated the impacted enrollment roster noting that 64 students ?Graduated? status was not applied and they are improperly reported as ?Withdrawn.? The sample was not intended to be, and was not, a statistically valid sample. Effect: Inaccurate submission of student enrollment status information could affect the determinations that lenders and servicers of students? loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government?s payment of interest subsidies. As the University reported these students as withdrawn prior to reporting as graduated, the students loan subsidy and repayments schedules were not impacted. Cause: The University?s internal control processes did not operate consistently to ensure that all enrollment information, including status changes, were submitted accurately to NSLDS. When the February 2022 graduation roster was submitted to the NSC certain records were not applied as there was a mismatch in the information provided. An error file was received by the University, but the corrections were not made. Recommendation: We recommend that the University review its processes and internal controls to ensure that all enrollment information and status changes are reported completely, accurately, and in a timely manner. Additionally, we recommend a review of the submitted enrollment data to the NSLDS be performed to ensure current student information and status is properly reflected. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.
Finding No. 2022-001 ? Enrollment reporting Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268, Federal Pell Grant Program: ALN: 84.063 Criteria: Institutions are required to report enrollment information under the Pell grant, Direct Loan, and Federal Family Education Loan (FFEL) programs via the National Student Loan Data System (NSLDS) (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file. The Department of Education lists several certification methods for enrollment reporting, including certifying directly through the NSLDS web site, certifying through the NSLDS?s batch enrollment reporting process, or through certification of rosters provided to the National Student Clearinghouse (NSC). Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The University generally certifies its enrollment information through rosters provided to the NSC. Of the 40 students with enrollment changes that we selected for test work, we identified 1 student whose change in enrollment status was not timely and accurately transmitted to NSLDS. The University was notified of the student?s enrollment status change from full-time to ?Graduated? in February 2022. Accordingly, the students? status changes should have been transmitted after the semester to report both Campus Level and Program Level enrollment status as ?Graduated.? However, in submitting enrollment information through rosters provided to the NSC, both Campus Level and Program Level statuses were reported as ?Withdrawn.? Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. Management evaluated the impacted enrollment roster noting that 64 students ?Graduated? status was not applied and they are improperly reported as ?Withdrawn.? The sample was not intended to be, and was not, a statistically valid sample. Effect: Inaccurate submission of student enrollment status information could affect the determinations that lenders and servicers of students? loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government?s payment of interest subsidies. As the University reported these students as withdrawn prior to reporting as graduated, the students loan subsidy and repayments schedules were not impacted. Cause: The University?s internal control processes did not operate consistently to ensure that all enrollment information, including status changes, were submitted accurately to NSLDS. When the February 2022 graduation roster was submitted to the NSC certain records were not applied as there was a mismatch in the information provided. An error file was received by the University, but the corrections were not made. Recommendation: We recommend that the University review its processes and internal controls to ensure that all enrollment information and status changes are reported completely, accurately, and in a timely manner. Additionally, we recommend a review of the submitted enrollment data to the NSLDS be performed to ensure current student information and status is properly reflected. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.
Finding No. 2022-002 ? Title IV Credit Balances Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268 Criteria: A Title IV credit balance must be paid directly to the student or parent as soon as possible but no later than (i) 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (ii) 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period (34 CFR 668.164(h)(2)). Condition: Of the 40 students with credit balances that we selected for test work, we identified 1 student whose credit balance was paid to the student 15 days after the credit balance was created. Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. The sample was not intended to be, and was not, a statistically valid sample. Effect: Returning funds in a timely manner is one of the factors examined by the Department in evaluating a school?s financial responsibility. Cause: The University had new staff in the accounting department who misinterpreted the applicable guidance. One of the days within the 15-day period was a banking holiday and was not included in the day count. Recommendation: We recommend that the University review its processes around Title IV credit balances to ensure they are returned to students as soon as possible but no later than 14 days after the credit balance is generated. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.